Role of Sourcing Manager in Outsourcing

December 3, 2011: The role of outsourcing sourcing manager is challenging as well as demanding. Few important responsibilities attached with the role of an outsourcing sourcing manager are discussed below.

  1. Offer specialized sourcing consultancy service

    The main role of an outsourcing sourcing service provider is to offer the clients a specialist sourcing consultancy service. This requires outsourcing and commercial methodologies of group purchasing function, which helps in developing the business unit strategies and help them to influence the business’s sourcing capability.

  2. Improve the customer operations by identifying opportunities

    Another important role is to identify the opportunities to improve customer operations by tracking the development in the external sourcing market. They should perform analysis to identify practices that will provide significant cost reduction or improvement in value to internal customers, or will make use of internal capabilities to develop business.

  3. Lead and facilitate cross functional teams

    Outsourcing sourcing managers are supposed to lead and facilitate cross functional teams in order to develop sourcing strategies for change. In addition to this they should provide knowledge about the market, outsourcing and procurement to the cross functional team.

  4. Assist in business development

    They should also provide assistance to business to evaluate the operational requirements and find out opportunities for improvement that are associated with achieving those requirements through optimized sourcing solutions.  

  5. Recognize and alleviate risk

    Managers should take the lead to recognize and alleviate risk associated with sourcing. They should manage the implementation of sourcing initiatives and should meet the time lines that are set in terms of delivery meeting the cost savings goal.

  6. Use e-sourcing technology

    With the gaining popularity of internet, outsourcing sourcing managers should make us of e-sourcing technologies and industry best practices to develop request for information, request for proposal and eAuctions.

  7. Ensure proper selection of suppliers

    They should make sure that proper supplier evaluation procedures are followed to choose vendors that are financially strong, technically superior and aligned more towards the business.

  8. Optimize the benefits of the business

    Developing a structure and negotiating contractual agreements to optimize the benefits for the business by making use of innovative commercial structures is the responsibility of the outsourcing sourcing manager.

  9. Proper implementation of sourcing strategy to ensure healthy relation

    The outsourcing sourcing manager is responsible for implementing the sourcing strategy in such a way that it makes the relationship with the supplier strong and enhance the performance of the supplier so that both the parties are benefited.

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